COR-IncomeStatement - Income Statement Explanations of Numbers Suggestions and Tips Your companys consolidated income statement provides a quick

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Income Statement Explanations of Numbers — Suggestions and Tips Your company’s consolidated income statement provides a quick, easy-to-digest overview of the company’s performance, region by region and companywide. This Help page contains explanations of where the income statement numbers come from and what they mean. There is also a section that explains the details of how the exchange rate adjustments to the Gross Revenues from Footwear Sales on this report are calculated. Understanding the Numbers in the Income Statement This company’s consolidated income statement contains a comprehensive breakdown of the company’s revenues from Internet sales, wholesale sales of branded footwear to retailers, and private-label revenues, region by region and companywide. In addition, there are regional and companywide breakdowns of operating costs and operating profits (losses). A brief discussion and explanation of each of the lines of numbers comprising the income statement is presented below: Gross Revenues — Gross revenues consist of the revenues generated from (1) branded pairs sold online at the company’s Web site, (2) branded sales to footwear retailers, (3) any contracts the company won in competitive bidding to produce private-label footwear for chain retailers, and (4) inventory clearance sales of branded footwear at the beginning of the year. Revenues from each source are calculated by multiplying the respective price in each region (see the $/pair number) by the number of pairs sold in each region. Companywide revenues are the sum of revenues generated in all four geographic regions; the $/pair number in the overall company column represents the weighted average price across the four regions. The numbers of branded pairs sold online and to retailers in each region and companywide are reported in the Branded Sales Report. Private-label sales volumes are reported in the Private-Label Sales Report. Special Note: The figures for the Wholesale component of Gross Revenues include all amounts received from supplying branded footwear to retailers of athletic footwear plus any revenues realized from inventory clearance sales of branded footwear at the beginning of the year. However, the numbers reported for "Gross Wholesale Revenues" in the Wholesale Market Performance portion of the Branded Sales Report do not include revenues realized from inventory clearance sales of branded footwear; if your company had an inventory clearance sale in a region at the beginning of the year, then the Gross Wholesale Revenues numbers in the Branded Sales Report will be smaller than the figures for the Wholesale component of Gross Revenues in the Income Statement. The revenues received from inventory clearance sales are show in the bottom box of the Distribution and Warehouse Report. Exchange Rate Adjustment
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This note was uploaded on 08/19/2011 for the course INTBUS 211 taught by Professor Daniel during the Winter '10 term at Auckland University of Technology.

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COR-IncomeStatement - Income Statement Explanations of Numbers Suggestions and Tips Your companys consolidated income statement provides a quick

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